InfoQuest (January 6, 2020) -- Deputy Prime Minister Somkid Jatusripitak has ordered the Eastern Economic Corridor (EEC) Office to promote investment in the region to prevent investors from being swayed by the impact of the global economy.
All the five major infrastructure projects worth 650 billion baht in EEC must begin construction within 2020, especially for the U-Tapao Airport and eastern aviation city. Mr. Somkid has given a deadline of three months for these megaprojects, as they are very important and schedules to begin construction have been delayed.
Mr. Somkid has also commissioned the EEC to take charge of all the preparatory work. There is no need to wait for the Supreme Administrative Court to rule on the private companies' appeal against the disqualification of the bid for the U-Tapao Airport, so that the construction can proceed upon the court's ruling, as all preparations have been put into place in advance.
Mr. Kanit Saengsuphan, secretary-general of the EEC Policy Committee, said at the EEC board meeting that the U-Tapao Airport project is sure to be concluded by March of 2020, for the Supreme Administrative Court is expected to rule within January on the appeal mentioned above.
In addition, Mr. Somkid has ordered the EEC Office to speed up the implementation of smart city (EECi) project, which must be launched within 2020 because of the previous long delay, and required the establishment of a project promotion panel by January 7. It is expected that related engineering projects will be open for tender in the third or fourth quarter of 2020.
The maintenance, repair and overhaul of the TG MRO center must also be pushed for concrete results by 2020. The project, which has been postponed due to pending details of the investment between Airbus and Thai Airways, is expected to witness the contract signing by the second quarter of 2020. The project will cover a total area of 500 rai, of which the contract will cover 200 rai and the remaining 300 rai can be redistributed to other three private companies engaged in building maintenance centers. And AirAsia Group has already applied for a land of 60 rai.
Mr. Kanit added that the Charoen Pokphand Group, the State Railway of Thailand and the EEC Office had agreed on the site delivery already for the high-speed rail network linking three airports. The private companies will throw themselves into managing the airport express and spending time on the design work, with the construction of the project expected to commence at the end of the year.
The third phase of Map Ta Phut port will start construction soon. Regarding the third phase of Laem Chabang seaport, the Supreme Administrative Court has urged the tender screening committee to proceed with the work, with a ruling expected in March.
Mr. Kanit said that the EEC scheme has five planned megaprojects worth 695 billion baht in total, with an average annual investment of over 100 billion baht. Of these, the industrial investment will amount to 404 billion baht in and out of the industry park, including about 120 billion baht submitted to the Board of Investment (BOI) by relevant target industries in the EEC region. This also includes investment in other projects, such as smart cities. These projects are expected to help boost Thailand's economy by 1.5-2.0 percent a year.
Mr. Somkid reiterated that as the EEC scheme was launched two years ago, the EEC is tasked to make progress at this stage to build investors' confidence in Thailand's commitment to the scheme, especially at a time when the risk of war in the world is likely to drive investment to Thailand, Thailand must create opportunities and build investment confidence to attract foreign investment. In 2020, the Thai government will place emphasis on infrastructure investment. Infrastructure projects including the high-speed rail project, the U-Tapao Airport, the third phase of Laem Chabang seaport, and the TG MRO center, as well as related sub-projects must be advanced at a faster pace, especially the EECi project.
"All projects have to begin construction within 2020. It’s good for Thailand. Currently, the EEC projects are progressing smoothly, and the EEC management is committed to advancing the projects to ensure continuity. Flagship projects and the high-speed rail project must be implemented, the Map Ta Phut port and Laem Chabang seaport projects must start construction as soon as possible, and the U-Tapao Airport project cannot be delayed any longer," Mr. Somkid said.
The deputy prime minister also attached great importance to the overall work of the EEC in 2020, emphasizing the expansion of investment in local areas and communities to generate income, improve people's quality of life, develop community economy, expand tourist attractions to second-tier cities and promote community tourism programs such as agricultural tourism and cultural tourism. He also urged to facilitate SMEs to connect to global markets through e-commerce, and promote projects such as the fruit corridor in the eastern region to generate income for people, and lift low-income people out of poverty within three years.
The EEC region has a population of about 3.4 million. The government will strive to improve people's quality of life and local environmental standards, and create jobs for the new generation of young people and working-age people. Targeting the low-income group of about 350,000, accounting for about 14 percent of the total local population, the Thai government will accelerate vocational training for specific groups, and team up with provincial governments, local administrative agencies, the private sector and the public to provide employment opportunities for locals, including the elder.
The government will improve people's living standards through public health, education, and the development of personnel skills, and designate Sichang Island, Island Inn and Samed Island as demonstration zones. Relevant tasks will be advanced in accordance with the environment plan and comprehensive waste disposal plan.
Source: InfoQuest, by Saowalak Ouypron / Sasithorn, translated by Xinhua Silk Road
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